Two factories can quote you 5.80 USD and 7.20 USD for the same t-shirt. Both are real. This guide breaks down what actually drives the per-piece cost of custom apparel, how to compare quotes apples-to-apples, and the 5 negotiation levers that bring the price down without cutting corners on quality.

Quick answer

A custom apparel per-piece cost is driven by 7 main factors: fabric, trims, labor, decoration, quantity, finishing, and packaging. Rough cost split:

  • Fabric: 50-65% of cost
  • Labor: 15-25% in China (much higher in US or EU)
  • Decoration: 0.50-5.00 USD per piece (depends on method)
  • Trims: 5-15% of cost
  • Finishing and packaging: 5-15% of cost

Below 200 pieces, expect to pay a 30-50% premium over 1,000+ piece pricing. Above 5,000 pieces, the discounts flatten out and fabric cost becomes the dominant lever.

The 7 cost drivers

1. Fabric (50-65% of cost)

Fabric is the biggest cost line. Variables:

  • Composition: cotton, polyester, poly-cotton, rayon, modal, specialty fibers (merino, bamboo, recycled poly)
  • Weight (gsm): heavier fabric costs more (and uses more yarn per piece)
  • Construction: jersey, french terry, fleece, interlock, rib, pique, waffle
  • Finish: pre-shrunk, mercerized, brushed, peached, enzyme-washed, anti-pill
  • Source: stock fabric (in factory warehouse) vs. custom-dyed, domestic China mill vs. imported (Japan, Korea, Turkey)

Rough fabric cost per yard: 1.50-2.50 USD for basic cotton, 3.00-6.00 USD for mid-tier blends, 6.00-15.00 USD for specialty. A 200 gsm t-shirt uses about 0.6-0.8 yards, so fabric alone is 1.00-5.00 USD per piece before any other costs.

2. Trims (5-15% of cost)

Trims add up faster than most buyers expect:

  • Main label: stock woven 0.05 USD vs. custom woven 0.15-0.30 USD
  • Care label: stock 0.04 USD vs. custom 0.10-0.15 USD
  • Size label: usually 0.03-0.08 USD
  • Hang tag: stock 0.10 USD vs. custom 0.20-0.40 USD (with string 0.05-0.10 USD extra)
  • Zippers: YKK 0.30-0.80 USD vs. generic 0.10-0.30 USD
  • Buttons, snaps, drawcords, elastic: variable, often 0.20-1.00 USD total
  • Thread: standard vs. bonded (bonded for performance gear)

Total trims per garment: typically 0.50-2.00 USD. Custom labels and tags can push a “basic” t-shirt up by 0.50-1.00 USD just on trims.

3. Labor (15-25% in China)

Average labor cost in coastal China: 0.50-1.50 USD per garment. Inland China: 0.30-0.80 USD. Vietnam, Bangladesh, Pakistan: similar to inland China. US/EU: 5-15 USD per garment, often more.

Labor scales with:

  • Skill level (basic t-shirt vs. tailored jacket)
  • Construction complexity (single-fabric vs. multi-fabric, multi-step)
  • Stitch count (more decorative topstitching = more labor)
  • Inspection requirements (AQL 1.0 vs. 4.0)

4. Decoration (variable)

Decoration cost depends entirely on method, number of locations, and number of colors:

  • Screen print: 0.30-1.50 USD per piece per color per location. Setup 30-80 USD per color per location (one-time).
  • DTG (Direct to Garment): 2.00-5.00 USD per piece. Best for full-color or photographic prints, small batches.
  • Embroidery: 0.50-3.00 USD per piece depending on stitch count. Setup 30-50 USD per design (digitizing, one-time).
  • Sublimation: 1.00-3.00 USD per piece. Best for all-over print, polyester garments.
  • Heat transfer: 0.50-2.00 USD per piece. Cheap for small runs, but does not last as long as print or embroidery.
  • Applique or 3D puff embroidery: 2.00-5.00 USD per piece.

5. Quantity (volume discount curve)

Volume discount is not linear. The biggest jump is from 200 to 1,000 pieces:

  • Below MOQ: 30-50% premium
  • At MOQ (200-500 pieces): standard pricing
  • 1,000 pieces: 5-10% off standard
  • 5,000 pieces: 10-20% off standard
  • 10,000+ pieces: 20-30% off standard (with negotiation)

Most factories hit their floor price around 5,000-10,000 pieces per style. Beyond that, savings come from fabric mill MOQ leverage, not labor efficiency.

6. Finishing (often overlooked)

Garment finishing can add meaningful cost:

  • Pre-wash (basic): 0.10-0.30 USD per piece
  • Enzyme wash (soft hand): 0.30-0.80 USD per piece
  • Stone wash (vintage look): 0.50-1.50 USD per piece
  • Bleach: 0.20-0.50 USD per piece
  • Tie-dye, dip-dye, garment dye: 0.50-2.00 USD per piece
  • Ironing / pressing: 0.05-0.20 USD per piece

Skip finishing if you want a “raw” or “vintage” look — saves 0.30-1.00 USD per piece but expect more variation piece to piece.

7. Packaging (small but adds up)

  • Individual poly bag: 0.05-0.20 USD per piece
  • Custom poly bag with logo: 0.15-0.40 USD per piece
  • Inner box: 0.30-1.00 USD per piece (5-20 pieces per box)
  • Master carton: 1.00-3.00 USD per carton
  • Tissue paper, insert cards, stickers: 0.10-0.50 USD per piece

Total packaging: 0.50-1.50 USD per piece, more for premium retail-ready packaging.

What “FOB price” actually means

When a factory quotes FOB (Free On Board), they include:

  • Factory cost (fabric, trims, labor, decoration, finishing, packaging)
  • Factory QC
  • Loading the garment onto a vessel at the named port (usually Shenzhen, Shanghai, or Ningbo for China)

FOB does NOT include: ocean freight, customs clearance, import duties, insurance, inland shipping, or last-mile delivery. A 5.00 USD FOB shirt typically lands at 7-9 USD in the US after shipping and duties.

Other common incoterms:

  • EXW (Ex Works): you pay for everything from the factory gate. Cheapest on paper, most risk for you.
  • FOB: factory delivers to your nearest port. Most common for first-time importers.
  • CIF (Cost, Insurance, Freight): factory pays for ocean freight and insurance. You pay port-to-door.
  • DDP (Delivered Duty Paid): factory delivers to your door with all duties paid. Most expensive on paper, simplest for you.

Always clarify in writing which incoterm your quote uses. A 0.50-1.00 USD price difference often comes down to shipping terms, not quality.

How to compare quotes apples-to-apples

When you receive 3 quotes, check that each one includes the same:

  • Fabric composition and weight (gsm)
  • Trim list (including every label and tag)
  • Decoration method, number of colors, and locations
  • Size run (S-M-L vs. XS-S-M-L-XL-XXL)
  • Quantity per style and per color
  • Lead time (calendar days, not just “30 days”)
  • Payment terms (T/T deposit, balance on what)
  • Shipping terms (FOB vs. EXW vs. DDP)
  • Quality standards (AQL level)
  • Packaging spec

If a quote is 20%+ below the others, something is missing. Ask for a full breakdown. If the supplier cannot provide one, walk away — that is the single most reliable sign of an unreliable factory.

5 negotiation levers that actually work

1. Volume commitment (most powerful)

Promise 3 orders in 6 months (only if true) and most factories will lock in lower pricing. Combining multiple styles in one PO to hit a higher quantity tier is the second most effective volume play. A factory quoting 6.00 USD for 200 pieces might quote 4.80 USD for 600 pieces across 3 styles using the same fabric.

2. Lead time flexibility

Longer lead time = more flexibility for the factory to fit you into low-utilization slots = lower price. If you can wait 60 days instead of 30, ask for a 5-10% discount. The factory saves on rush fees and overtime, you save real money.

3. Payment terms

Higher deposit (50% vs. 30%) lowers risk for the factory and unlocks better pricing. Faster balance payment (within 7 days of inspection vs. 30 days) also earns a discount. Cash flow is the factory’s main pain point — relieve it, get a discount.

3. Fabric flexibility

Ask the factory what fabrics they already have in stock. Accepting 1-2 alternatives (e.g. “use 180 gsm if you have it, 200 gsm if you have to custom dye”) often saves 10-20% on fabric cost. Stock fabric is the single biggest hidden discount in apparel sourcing.

5. Decoration flexibility

Reduce the number of print locations (3 -> 2), use stock-color thread instead of custom Pantone, switch from 3D puff to standard embroidery. Each of these is small, but together they can save 0.50-1.50 USD per piece without changing the look meaningfully.

Hidden costs buyers forget to budget

  • Lab dips: 30-80 USD per color per round (2-3 rounds typical for color approval)
  • Pantone thread match: 30-50 USD per color (one-time)
  • Pre-production sample: 30-80 USD per style (usually refunded on bulk order)
  • Counter samples / size sets: 30-80 USD per size per style
  • Third-party inspection: 150-300 USD per man-day (1-2 days typical for first order)
  • Sample shipping: 50-200 USD per shipment via DHL or FedEx
  • Customs duties: 10-30% of FOB value depending on country and HS code
  • Customs broker fee: 100-300 USD per shipment in the US
  • Warehousing: 0.50-2.00 USD per cubic foot per month if you hold inventory

Add these to your FOB quote to get a true “landed cost per piece” for budget purposes.

FAQ

Why is factory A’s quote 30% lower than factory B?

They are missing something — usually fabric grade, decoration method, or quality standards. Ask for a full breakdown. If they cannot or will not provide one, walk away. A 30% discount on an underspecified quote is not a discount at all.

Can I get a firm quote before sampling?

Yes, but it will be accurate to within ±10%. Firm pricing locks after the pre-production sample is approved, because the factory confirms the actual fabric yield, the actual labor time, and the actual decoration output.

Does the factory’s location matter for price?

Yes, but less than you think. Coastal factories (Guangdong, Zhejiang, Jiangsu) have higher labor costs but better export infrastructure and faster shipping. Inland factories (Sichuan, Hubei, Anhui) often have 10-20% lower labor cost but longer inland shipping to port. For a typical FOB comparison, total cost difference is usually 5-10%.

What about the “3 USD t-shirt” I see online?

It is a basic stock blank with one-color screen print, no custom labels, MOQ 5,000+, no inspection. Realistic custom apparel with proper labels, custom print, and third-party QC starts at 4-6 USD per piece for t-shirts at 500-piece MOQ. If a quote is below 3.50 USD for custom apparel, it is either wrong or not what you think it is.

Should I pay in USD or RMB?

Most Chinese factories quote and invoice in USD to international buyers. Pay in USD via T/T (wire transfer) to a Chinese bank account. Avoid paying in crypto, via informal channels, or to personal accounts — you lose legal protection if anything goes wrong.

What if I want a DDP price (delivered to my door)?

Ask for it. Most factories will quote DDP if you give them your address and a rough volume estimate. DDP includes all shipping, customs, and duties. It costs more than FOB on paper, but it removes all logistics complexity from your side — worth it for first orders.

How this fits the buyer journey

Pricing is what every other decision comes down to. For the upstream decisions:

How we work at Kemondo

At Kemondo Apparel, every quote we send is a full breakdown (fabric, trims, labor, decoration, finishing, packaging, plus optional FOB or DDP shipping) so you can see exactly what you are paying for. Standard quote turnaround: 24-48 hours. Sample cost: 30-80 USD per style, refunded on bulk order above MOQ. Typical FOB pricing at 500-piece MOQ: t-shirts 4.50-7.00 USD, polos 5.50-9.00 USD, hoodies 8.00-14.00 USD, depending on fabric and decoration.

Request a detailed quote: Message us on WhatsApp with your product type, quantity, and reference image. We usually reply within 12 hours with a full breakdown.